2024 Tax Reform: Gradual Reduction of Corporate Tax for Small and Micro Entities

Last Thursday (20/11/2024) the Congress approved a tax reform that will be validated by the Senate in the next month and will come into force before the end of the year. One of the measures consists of a gradual reduction in the corporate tax rate for small entities (those with a group turnover of less than 10 million euros and which are not mere asset-holding companies) and micro-small entities (those with a turnover of up to 1 million euros).

Specifically:

Small entities will be taxed:

  • In the year 2025 at 24%
  • In the year 2026 at 23%
  • In the year 2027 at 22%
  • In the year 2028 at 21%
  • In the year 2029 at 20%

Micro-small entities will be taxed:

  • In the 2025 at 22% (and the first €50,000 will be taxed at 21%)
  • In the year 2026 at 21% (and the first € 50.000 will be taxed at 19%)
  • In the year 2027 at 20% (and the first €50,000 will be taxed at 17%).

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